Justice Department Sues Fort Worth-Area Tax Preparation Business and Its Owners

Source: United States Department of Justice Criminal Division

Lawsuit Seeks to Stop Business and its Owners and General Manager from Preparing Tax Returns and Owning or Operating a Tax Preparation Business

Note: View complaint here.

The Justice Department today filed a civil injunction suit in federal court in Fort Worth, Texas. The lawsuit seeks to bar Amberley Ritter, Wesley Franklin, Mark Burkart, Kenneth Garner, and DFW Integrity Taxpros Services LLC, which does business as Integrity Tax Pros, from owning or operating a tax preparation business and preparing tax returns for others. The complaint also requests that the court require the defendants to disgorge the return preparation fees they obtained from preparing allegedly false or fraudulent tax returns.

According to the complaint, Ritter, Franklin, and Burkart own Integrity Tax Pros, which operates as tax preparation stores in the Fort Worth area: North Richland Hills, Azle, Watauga, Haltom City, Hurst, and Saginaw. The complaint alleges that Garner acted as the General Manager overseeing Integrity Tax Pros stores.

In the complaint, the government alleges that the defendants, and those acting at their direction, prepare and file tax returns to falsely increase their customers’ refunds, and they profit through high and often undisclosed preparation fees — at the expense of their customers and the Treasury. Examples of misconduct by defendants, and those acting at their direction, alleged in the complaint include:

  • Falsely claiming the Earned Income Tax Credit;
  • Fabricating businesses and related business income and expenses;
  • Claiming false education credits;                  
  • Claiming fabricated COVID-19-related tax credits;
  • Fabricating itemized deductions, including for unreimbursed employee business expenses;
  • Failing to conduct the required due diligence when claiming tax credits, including the Earned Income Tax Credit; and
  • Failing to identify the actual paid preparer of completed tax returns.

The Tax Division reminds taxpayers that the IRS has information, tips and reminders on its site for choosing a tax preparer carefully (Choosing a Tax Professional and How to Choose a Tax Return Preparer) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.

In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.

In the past decade, the Justice Department’s Tax Division has obtained civil injunctions and criminal convictions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Virginia Nurse Sentenced to Over Seven Years in Prison for Distributing Child Sexual Abuse Material

Source: United States Department of Justice Criminal Division

A Virginia nurse was sentenced today to over 87 months in prison and ten years of supervised release for distributing child sexual abuse material (CSAM) on an end-to-end encrypted messaging application. He was also ordered to pay a $20,000 fine.

“The defendant, who occupied a position of trust as a nurse practitioner, used an end-to-end encrypted messaging application to disseminate images depicting the abuse of young children and bragged about the effectiveness of the measures that he used to evade law enforcement detection,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “He thought that he could use technology to hide his crimes, but he was wrong. His sentence today should serve as a warning – to those that would harm vulnerable children, we will identify you, prosecute you, and bring you to justice.”

According to court documents, Lucas Fussell, 43, formerly of Onley, Virginia, used the Session messaging application to send and receive numerous videos and images depicting the rape and sexual exploitation of prepubescent boys with another individual. Fussell, who worked as a nurse practitioner, also discussed several of his male patients, including children, in these communications, and boasted about the sophisticated technological measures he took to evade detection by law enforcement. The FBI came into possession of the other individual’s cellphone. In June 2024, Fussell sent an undercover officer nine videos depicting the sexual exploitation of prepubescent boys. Fussell was then arrested in July 2024 and has been detained since. In December 2024, Fussell pleaded guilty to the indicted charges without a plea agreement.

Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Assistant U.S. Attorney Caroline Burrell, and Assistant U.S. Attorney Paul Courtney for the District of Columbia prosecuted the case. CEOS’ High Technology Investigative Unit (HTIU) provided substantial assistance in investigating the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

Debtor Who Led Crypto Investment Scheme Denied Bankruptcy Discharge

Source: United States Department of Justice Criminal Division

The U.S. Trustee Program (USTP) recently obtained a judgment denying a bankruptcy discharge of more than $12.5 million to a Texas man who concealed assets and lied in his bankruptcy case to evade his creditors, including investors in his cryptocurrency Ponzi scheme.

On Aug. 1, the Bankruptcy Court for the Southern District of Texas entered a default judgment against chapter 7 debtor Nathan Fuller. Fuller owned Privvy Investments LLC, a cryptocurrency investment company that he used to divert investor funds. Fuller spent a portion of the money on luxury goods, gambling trips, and a nearly $1 million home for his ex-wife, who was involved in the business and with whom Fuller still resided.

“Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy,” said U.S. Trustee Kevin Epstein of Region 7, which includes the Southern District of Texas. “The USTP remains vigilant for cases filed by dishonest debtors, who threaten the integrity of the bankruptcy system.”

Fuller filed for bankruptcy in October 2024 after a receiver was appointed to take possession of his assets in a lawsuit brought by investors in Texas state court. Following an investigation, the USTP’s Houston office filed a complaint objecting to Fuller’s discharge alleging that Fuller had concealed extensive assets, failed to keep records, and made multiple false oaths regarding his bankruptcy case and a separate bankruptcy filing for Privvy.

After being held in civil contempt for failing to comply with court orders, Fuller admitted that he had operated Privvy as a Ponzi scheme and fabricated documentation to advance the scheme. Fuller also admitted that he gave false testimony and falsified bankruptcy documents to hinder the chapter 7 trustee appointed to administer his and Privvy’s bankruptcy cases.

Following those admissions, Fuller failed to respond to the USTP’s complaint, leading to a default judgment in the USTP’s favor. As a result, Fuller remains personally liable for his debts – including more than $12.5 million in unsecured debts listed in his bankruptcy schedules – and creditors may continue collections on claims against him.

The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public. The USTP consists of 21 regions with 88 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust